As global markets react to China's robust stimulus measures and European hopes for interest rate cuts, the Swedish market has also seen significant movements. With the Riksbank's recent interest rate cut to 3.25%, investors are closely watching how these changes will impact dividend stocks in Sweden. When considering dividend stocks, it's essential to look for companies with stable earnings and a strong track record of consistent payouts, especially in light of current economic conditions.
Overview: Avanza Bank Holding AB (publ) provides a variety of savings, pension, and mortgage products in Sweden with a market cap of SEK39.88 billion.
Operations: Avanza Bank Holding AB (publ) generates revenue primarily from its commercial operations, amounting to SEK3.96 billion.
Dividend Yield: 4.5%
Avanza Bank Holding's dividend payments are covered by both earnings (87.3% payout ratio) and cash flows (55.8% cash payout ratio). Despite a volatile track record over the past decade, dividends have increased during this period. Recent operating results show an increase in customer numbers and net inflows, with net income for Q2 2024 at SEK 506 million. The recent departure of Deputy CEO Gunnar Olsson may impact management stability short-term but shouldn't affect dividend sustainability directly.
Overview: Loomis AB (publ) offers solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables with a market cap of SEK22.89 billion.
Operations: Loomis AB (publ) generates revenue primarily from its operations in Europe and Latin America (SEK14.32 billion), the United States of America (SEK15.45 billion), and Loomis Pay (SEK77 million).
Dividend Yield: 3.8%
Loomis's dividend payments have been volatile over the past decade but are covered by both earnings (59.4% payout ratio) and cash flows (26.3% cash payout ratio). Recent financials show Q2 2024 sales at SEK 7.64 billion, up from SEK 7.07 billion a year ago, with net income rising to SEK 396 million from SEK 357 million. The company completed share buybacks totaling SEK 199.75 million and issued €300 million in senior unsecured notes, enhancing its financial flexibility for future dividends.
Overview: Zinzino AB (publ) is a direct sales company that offers dietary supplements and skincare products both in Sweden and internationally, with a market cap of SEK3.05 billion.
Operations: Zinzino AB (publ) generates its revenue primarily from its Zinzino (including VMA Life) segment, which accounts for SEK1.83 billion, and the Faun segment, contributing SEK170.31 million.
Dividend Yield: 3.4%
Zinzino's dividend payments have been stable and growing over the past decade, supported by a reasonable payout ratio of 56.3% and a cash payout ratio of 47.4%. Recent financials show strong performance, with Q2 2024 sales rising to SEK 485.1 million from SEK 387.86 million a year ago and net income increasing to SEK 47.99 million from SEK 36.8 million. The company was recently added to the S&P Global BMI Index, indicating positive market recognition.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include OM:AZA OM:LOOMIS and OM:ZZ B.
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